Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured. National Interstate's intangible assets for the quarter that ended in Sep. 2016 was $7.7 Mil.
National Interstate Intangible Assets Historical Data
The historical data trend for National Interstate's Intangible Assets can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured. Examples of intangible assets include trade secrets, copyrights, patents, trademarks. If a company acquires assets at the prices above the book value, it may carry goodwill on its balance sheet. Goodwill reflects the difference between the price the company paid and the book value of the assets.
National Interstate (NAS:NATL) Intangible Assets Explanation
If a company (company A) received a patent through their own work, though it has value, it does not show up on its balance sheet as an intangible asset. However, if company A sells this patent to company B, it will show up on company B's balance sheet as an intangible asset.
The same applies to brand names, trade secrets etc. For instance, Coca-Cola's brand is extremely valuable, but the brand does not appear on its balance sheet, because the brand was never acquired.
Some intangibles are amortized. Amortization is the depreciation of intangible assets.
Many intangibles are not amortized. They may still be written down when the company decides the asset is impaired.
Whenever you see an increase in goodwill over a number of years, you can assume it's because the company is out buying other businesses above book value. GOOD if buying businesses with durable competitive advantage.
If goodwill stays the same, the company when acquiring other companies is either paying less than book value or not acquiring. Businesses with moats never sell for less than book value.
Intangibles acquired are on balance sheet at fair value.
Internally developed brand names (Coke, Wrigleys, Band-Aid) however are not reflected on the balance sheet.
One of the reasons competitive advantage power can remain hidden for so long.
Be Aware
Companies may change the way intangible assets are amortized, and this will affect their reported earnings.
National Interstate Intangible Assets Related Terms
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National Interstate (National Interstate) Business Description
National Interstate Corp was founded in 1989. The Company, together with its subsidiaries operates as an insurance holding company group that underwrites and sells traditional and alternative property and casualty insurance products to the passenger transportation, trucking and moving and storage industries, general commercial insurance to small businesses in Hawaii and Alaska and personal insurance to owners of recreational vehicles throughout the United States. It is a specialty property and casualty insurance company with a niche orientation and a focus on the transportation industry. It offers over 40 product lines in the specialty property and casualty insurance market, which it groups into four general business components, alternative risk transfer, transportation, specialty personal lines and Hawaii and Alaska based on the class of business, insureds' risk participation or geographic location. Alternative risk transfer underwrites, markets and distributes truck transportation, passenger transportation and moving and storage ART insurance products, also known as captives. Transportation underwrites commercial auto liability, general liability, physical damage, workers' compensation and motor truck cargo and related coverages for truck and passenger operators. Specialty personal lines offer coverage for campsite liability, vehicle replacement coverage and coverage for trailers, golf carts and campsite storage facilities. The Company offers its products through multiple distribution channels including independent agents and brokers, program administrators, affiliated agencies and agent internet initiatives. The Company competes with Lancer Insurance Company, RLI Corporation, Great West Casualty Company, Northland Insurance Company, Sentry Insurance, Progressive Corporation and National General Insurance, Liberty Mutual Insurance Company, First Insurance, Dongbu Insurance Company, DTRIC Insurance Company, Zurich Insurance Company, American International Group, Inc., Travelers Company, Inc.
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